Saved The 2024 income statement of Adrian Express reports sales of $23,110,000, cost of goods sold...

Transcribed Image Text:

Saved The 2024 income statement of Adrian Express reports sales of $23,110,000, cost of goods sold of $13,200,000, and $2,460,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets Assets Current assets: Cash December 31, 2024 and 2023 2024 2023 Accounts receivable Inventory Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term debt Common stock Retained earnings Total liabilities and stockholders' equity Industry averages for the following ratios are as follows: Gross profit ratio Return on assets 45% 25% Profit margin 15% Asset turnover 2.5 times Return on equity 35% $ 1,080,000 2,075,000 2,665,000 5,280,000 $ 11,100,000 $ 2,338,000 2,742,000 2,375,000 3,645,000 $ 11,100,000 '$ 1,050,000 1,385,000 1,975,000 4,530,000 $ 8,940,000 $ 1,988,000 2,728,000 2,185,000 2,039,000 $ 8,940,000 Required: 1. Calculate the five ratios listed above for Adrian Express. 2. Do you think the company is more profitable or less profitable than the industry average? < Prev 5 of 7 H+ Next > Saved The 2024 income statement of Adrian Express reports sales of $23,110,000, cost of goods sold of $13,200,000, and $2,460,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets Assets Current assets: Cash December 31, 2024 and 2023 2024 2023 Accounts receivable Inventory Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term debt Common stock Retained earnings Total liabilities and stockholders' equity Industry averages for the following ratios are as follows: Gross profit ratio Return on assets 45% 25% Profit margin 15% Asset turnover 2.5 times Return on equity 35% $ 1,080,000 2,075,000 2,665,000 5,280,000 $ 11,100,000 $ 2,338,000 2,742,000 2,375,000 3,645,000 $ 11,100,000 '$ 1,050,000 1,385,000 1,975,000 4,530,000 $ 8,940,000 $ 1,988,000 2,728,000 2,185,000 2,039,000 $ 8,940,000 Required: 1. Calculate the five ratios listed above for Adrian Express. 2. Do you think the company is more profitable or less profitable than the industry average? < Prev 5 of 7 H+ Next >